Converting Your Promissory Note into Cash in Albuquerque

If you’re thinking about selling your promissory note – that is, converting your promissory note into cash in Albuquerque, you need to be aware of some of the steps involved. Otherwise, the process can easily become confusing and overwhelming. The tasks and tips laid out here apply to real estate notes, land notes, mobile home notes, and, basically, any other promissory note secured by property or assets. So here are a few things you need to be aware of and do to make the whole process a little smoother.

Locate All Your Documents

Your first step in converting your promissory note into cash in Albuquerque is to locate and have readily accessible all the documents used to close the sale at the time it took place. These usually include (but certainly aren’t limited to) the mortgage or deed of trust, the promissory note, the closing and settlement statement, and the payor’s personal information including credit score. With this information in hand, you can provide the investor the necessary information for assuring an accurate offer.

Expect a Discount

Contrary to what some expect, converting your promissory note into cash in Albuquerque does not mean an investor will pay you the full balance owed on the note when they purchase it. Bids and purchase prices will always be discounted from the current note balance. The simple fact is investors have to make money, too, so they expect to purchase a promissory note for a price that will allow a return on their investment. This is where the services of a professional will come in handy to help you structure the note to increase its appeal to investors – and so get you a higher price.

Provide Accurate Information

Nothing will delay the process of converting your promissory note into cash in Albuquerque like providing inaccurate information. Beyond providing accurate information in the first place, you should also be prepared to verify everything or, lacking the willingness or ability to do that, expect an even greater discount. Investors must do due diligence and check everything out.

Read the Letter of Intent

The letter of intent (LOI) lays out the investor’s intent to purchase the promissory note for a specific dollar amount. This form of contract is usually issued to the note holder after the offer has been accepted and before the release of documentation about the instrument. One of the primary purposes of this LOI is to give the investor some wiggle room, so it usually contains stipulations and clauses that will allow that investor to back out or rescind the offer under certain circumstances. In addition, this LOI can be either unilateral or bilateral.

Review the Payout Agreement

This is where the rubber meets the road in converting your promissory note into cash in Albuquerque. The payout agreement is a brief unilateral document that specifies the investor’s obligation to pay a specified amount if and when the deal closes.

One thing you want to make sure of, then, is that you are receiving net offers. What this means is that there will be no undisclosed broker fees deducted and that the amount offered is what you will actually receive at closing. In addition, it should be clear about who is responsible for paying closing costs if there are any.

For some people in certain situations, cash in hand is a better option than payments spread over months or years. So for them, converting a promissory note into cash in Albuquerque is a good idea. If you decide to do this, however, you need to be vigilant. Or you could cut down on the worry and hassle and by working with experienced professionals.

Robb is a great guy to work with when it comes to investing in real estate.

His local market knowledge, focus on service and ability to get deals done speaks great volumes about him and his business. I would highly recommend Robb! Kurt A. Nederveld, CEO of Rainstar Capital Group

Mountain View Investors, Inc.

Robb is a person of high integrity with an intense desire to do the very best for his clients.

He understands all aspects of real estate investing and project development. I highly recommend him as a resource for any real estate transaction. – Spencer Lewallen, Mortgage Loan Originator at VanDyk Mortgage

Mountain View Investors, Inc.

If you are thinking about doing business with MVI, I would highly recommend that…

“I have had the opportunity to have worked with Robb on several different levels in his real estate investing business (Capital, Owner Financing, and deal flow) I have experienced that Robb carries himself very professionally. If you are thinking about doing business with MVI, I would highly recommend that.” – Troy Fullwood, Founder at Pinnacle Investments

New Mexico’s Premier Note Buyer. Disclosure: Although I am a licensed real estate agent, I am not soliciting you to list your property or represent you. I am acting as a buyer/investor and only represent myself in any transaction. Mountain View Realty, LLC # 19613